Windwoodtrader
Beware of Stop Loss traps!

On Monday, 5 June I had a healthy profit in (DDD) and wanted to protect it. I placed a Stop Loss order to sell at $20.20 while the price was at $20.70 near the close. I put the order in since I would not be able to have access to the market at the open. When I did get to the screen at 10:30 I was happy to see that (DDD) was trading a little above Monday's close, $20.75.

When I checked my orders I was shocked to see that my Stop order was executed at the open at $20.20. I looked at the tape record and saw that there was only one order at that price- Mine. the next trade was at 20.45. How could this happen? Obviously my Stop order was seen by man or machine and pounced upon in a nefarious manner stealing all my profit.

I don't know if there is a way to control this but everyone needs to be aware that thieves lurk in the wings of our markets and you might not get the results you hope for in Stop Loss orders.

WindwoodTrader


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AbovetheGreenLine
Sorry to hear that, but I think the Market Makers can see your order, and go down and clip you. (supposedly the stock has to have a Bid there).

It sucks... about all you can do is stay in liquid investments where the Markets Makers don't want to lose their trading customers (like DDD [confused]?)

Good trading, and tell your friends!
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wlee222
some companies allow hidden order, which others may not see your stop loss order.
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AbovetheGreenLine
Was your order hidden?
Good trading, and tell your friends!
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Windwoodtrader
Order hidden?
I don't have a clue- How is that done? Stealth order?
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wlee222
http://www.wallstreetandtech.com/exchanges/hidden-orders-and-dark-pools-are-taking-order-secrecy-on-wall-street-to-a-new-level/d/d-id/1258361?
"And now, "hidden orders" and "dark pools" are taking order secrecy on Wall Street to a new level. Hidden orders are the name on the Street for electronic orders that do not display on any quote feed. Enter a standard displayed order to sell 5,000 shares on the NYSE at 25.75 and the entire market sees it within seconds, often resulting in a short-term trader stepping a penny ahead of it and offering to sell the stock at 25.74. Enter the same order on NYSE Arca as a hidden order and nothing gets displayed to the world. The order sits in the dark, having transmitted no information to competitors, quietly waiting for a match against another silent electronic buy order."
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AbovetheGreenLine
Another reason to stay with very liquid investments...
Good trading, and tell your friends!
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smithsh3
What are 'Liquid' investments?
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AbovetheGreenLine
Liquid would mean the very Highest Volume Investments.

Thin, low traded Investments tend to get scalped more by bad Market Makers...
Good trading, and tell your friends!
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johnlwebb
If the market makers are nefarious, wouldn't it make more sense to buy shit at garage sales and sell it at flea markets?
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AbovetheGreenLine
Most of the Market Makers are good... The bad ones seem to be on certain stocks.

Investors need to alert others, when they get burned. 
Good trading, and tell your friends!
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